Government policies directly affect the airline industry. In 2001, the global airline industry recorded losses of $13 billion. Passengers now prefer to access ticketing and check-in services through their hand-held devices instead of forming a line or booking manually. administrator, before a Senate committee hearing in May. Airline operations traverse wide geographic areas and are affected by policies imposed by governments at all levels local, national and international. September 01, 2022. Researching Click the linked book title to view the book's record in the HOLLIS library catalog. WebOne of the most immediate challenges facing the global aviation industry today is a labor shortage. The recent era of economic depression shook all industries and airlines industry was no exception. To match the reduced demand, airlines were forced to cut capacity by 2.8% in 2001 and 3.9% in 2002. Therefore, legal factors can impact a business to a great extent. Informative and inspiring worldwide coverage. Various countries enact labor laws that mandate generous benefits. In addition, demand for air travel at The airline industry is one that is very dependent on the economy of a country in that, when the economy is not doing so well, there are higher chances that it will also be experiencing difficulties in terms of revenue. Last year, Nancy Young, the vice president for environmental affairs at Airlines for America, a group that lobbies for the airline industry, testified to Congress that her members needed the federal government to create a legal certification demonstrating that American-made aircraft comply with the international standard. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. The aviation industry also conducts advertising campaign on the social platform for attracting more clients. Contact Us | Privacy Policy | Terms of Service, external factors that are affecting business, Ecological factors impact the airline industry the most than any other industry, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? The links below are to sources related to this topic that are available in the Westlaw subscription legal research database. Airlines are made responsible for air crashes or any other type of damage or disaster. A case in point has been the several flights cancelled due to the Omicron variant, causing havoc before Christmas. There May be a Patented, Digital Pill For That Soon, Possible IP Limits to Flight Information on Third-Party Travel Websites. My Efficient Planet: How Economic Factors Affect the Airline Industry. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. Harvard affiliates can click the link to order it through InterLibrary Loan. Bryan Watt, a spokesman for Boeing, called the new rule a major step forward for protecting the environment and supporting sustainable growth of commercial aviation and the United States economy.. Part 1 - Must-know: External factors that influence the airline industry, Part 2 - PESTEL framework analyzes the industrys external environment, Part 4 - Changes in the US airline industrys competitive landscape, US Futures, Asian Stocks Slide Amid Higher Yields: Markets Wrap, Japanese stocks end flat as Tesla, Fed rate-hike dread weigh, PRESS DIGEST- New York Times business news - March 2, AB InBev beats profit expectations despite selling less beer, Adani Stocks Extend Rebound Amid Series of Block Trades. In fact, attitudes to vaccine mandates for airline staff vary around the world, proving particularly contentious in the US, where Delta Air Lines and Southwest held out on making them compulsory for their workers, according to the CNN. It was formerly known as the Air Transport Association of America (ATA). These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). There are many laws devised for air traffic and the safety and security of passengers. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. In the medium run, airline companies face two uncertainties: The cost of health-related measures. Making a PESTLE analysis will help in determining the weak areas and how much efforts are required to invest so as to get back to the right way. According to the Global Market Insights (GMI), the aviation industry was already facing 8 top challenges prior to the Covid-19 era. Its also impacted byissues likewar, terrorism, and the outbreak of diseasessuch as Ebola. Booking.com awaits Supreme Court ruling as the USPTO appeals previous decisions finding BOOKING.COM, though a combination of generic terms, can be protected through trademark registration. In addition, this Title includes regulations regarding airspace and air traffic. These factors made it difficult to generate profits. General 1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction. WebPolitical- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore market and other countries as well. Climate changes also have an impact on the aviation industry as airlines are now required to practice green flying procedure for protecting the environment. Read those pages for additional information regarding the legal solutions our industry teams provide. PESTLE analysis is a strategic method through which airline companies can weigh all external factors that are affecting business. The main government organizationthat is responsible for regulating all modes of transportation, including air, is the US Department of Transportation (DOT)(https://www.transportation.gov/), a federal executive agency. This means that reaching carbon neutrality in 2050 means acting today. Customers tend to choose airlines based on the characteristics of their services, which include on-board amenities, safety, entertainment, and ground services (Wen & Yeh, 2010). This increasing cost of doing business, facing competition from low-cost airlines, abiding with the rules and regulations imposed by the government as well as changes in the profile and demand of consumers have led the industry to make its external factor analysis for meeting the industry requirements. This is the third time in the past two years that this administration has taken major action to regulate greenhouse gases in a way that is legally defensible, reduces CO2 and protects American jobs, Andrew Wheeler, the head of the Environmental Protection Agency, said on a telephone call with reporters Wednesday morning. The future of the proposal will be determined by the results of the November election. Article by Klemchuk LLP, an IP law firm. 2020-2022 Travel Tomorrow - Flagship brand of. The new proposal on airplane emissions, which would be open to public comment before being legally finalized, is modeled after a plan drafted largely by international airline companies and adopted in 2016 by the International Civil Aviation Organization, a United Nations body. First, social factors such as education, tastes/ preferences, and attitudes affect the industry. Aviation is a complex industry governed by an extensive regulatory environment. Click a link to view its search results. Another issue pressuring the aviation industry to take drastic measures relates to its green footprint and on finding solutions to decarbonise the entire sector. Includes regulatory history, Supreme Court case history, bills, and Congressional materials (reports, hearings, and other documents). The endangerment finding did not include the details of a regulation, but it set off a legal requirement under the Clean Air Act for the E.P.A. Several policies have been devised to protect passengers more than the aviation industry. Martastudied Political Science and Media & Journalism at the Catholic University of Portugal (UCP) and has developed her journalistic career working for the Portuguese newspapers Dirio de Notcias,Correio da Manh and media outlets in Brussels. to establish a rule. If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Dept. Entering the new year, the aviation industry faces considerable challenges and risks ahead. For more information, contact opendata@sec.gov. E.P.A. Getting the Deal Through is a subscription database that provides information about applicable law in several business-related practice areas for multiple jurisdictions. Revenue declined by $22 billionto $307 billion in 2001from $329 billion in 2000. of Transportation looking into practices of travel websites and question of whether flight information is proprietary and protectable by the airlines. Increased technological advancements can make airlines gain profits through offering safety and enhanced services. Additionally, airlines were also under the pressure to cope up with the increasing fuel prices. Discrimination law Copyright, patents / Intellectual property law Consumer protection and e-commerce Employment law Health and safety law Data Protection These regulations cover all aspects of the airline industry, including the airlines themselves (carriers), as well as their equipment (aircraft) and pilots (airmen). The links below are to sources related to this topic that are available in the LexisAdvancesubscription legal research database. Regulatory Bodies Thank you for your interest in the U.S. Securities and Exchange Commission. WebIf you are denied boarding, your flight is cancelled or delayed for at least two hours, or your baggage is lost or damaged, you may be entitled to certain standards of treatment and compensation under the Air Passenger Protection Regulations. Published. The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. In 2016, the Obama administration released a legal conclusion known as an endangerment finding, which determined that the planet-warming pollution produced by airplanes endangers human health by contributing to climate change. Materials from the ProQuest Legislative Insight subscription database. Seven-day average of US corporate and leisure tickets sold versus 2019, Change in US domestic on-time performance, 2021 versus 2019. Passenger traffic decreased by 5.9% year-over-year (or YoY) in 2001 and 1.4% in 2002. Fuel price: In general, fuel price always plays an important role in the Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Stimulus checks to consumers provide discretionary income, which increases demand for vacations and air travel. means that reaching carbon neutrality in 2050 means acting today. Add me to Travel Tomorrow's mailing list. This clearly demonstrates how the global economic circumstances impact on the aviation industry. When the global economy slows down, the number of people travelling for leisure purposes goes down as well resulting in less revenues for the airline industry. We rely on our journalists to be independent observers. President Trump is still pressing forward on his three-and-a-half-year rollback of environmental standards, and the proposed airline rule would stave off an impending lawsuit by putting the federal government in compliance with a legal requirement that it regulate airplane greenhouse emissions. Commercial and Regulatory 5. Both economy and premium travelling declined. In addition, private companies may also institute policies that affect the industry's viability, such as policies about fuel. Financially weak carriers even went into bankruptcy during the period. In this section, we will have a look at the external factors affecting companies in the airline industry. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. In January, several environmental groups filed a legal notice of their intent to sue the Trump administration for its failure to meet that requirement, giving 180 days notice. Your request has been identified as part of a network of automated tools outside of the acceptable policy and will be managed until action is taken to declare your traffic. The U.S. airline industry revenue decreased to $107.1 billion in 2002 from $130.2 billion in 2000. Moreover, airlines also struggled with increasing labour demands from the part of employees. Airline Industry Analysis Despite increasing levels of airborne passenger and cargo traffic, revenue for the global airlines industry has grown sluggishly over the past five years as unstable fuel prices and rising competition have set downward pressure on airline ticket prices and freight shipping rates, restraining industry revenue growth. John F. O'Connell; George Williams (Editor), Attention All Passengers: The Airlines' Dangerous Descent -- and How to Reclaim Our Skies, Clipped Wings: Corporate Social Responsibility and the Airline Industry, From Lowlands to High Skies: a Multilevel Jurisdictional Approach Towards Air Law, Full Upright and Locked Position: Not-So-Comfortable Truths About Air Travel Today, Peter Belobaba (Editor); Cynthia Barnhart (Editor); Amedeo Odoni (Editor), International Air Carrier Liability: Safety and Security, Andrew J. Harakas; American Bar Association, Tort Trial and Insurance Practice Section Staff (Contribution by), Managing the Skies: Public Policy, Organization, and Financing of Air Traffic Management, The Principles and Practice of International Aviation Law, Progressive Commercialization of Airline Governance Culture, The Routledge Companion to Air Transport Management, Nigel Halpern (Editor); Anne Graham (Editor), https://guides.library.harvard.edu/aviation_regulation, Regulation of the Aviation Industry: Major Players, Title 14 of the Code of Federal Regulations, Researching Aviation Law Topics: Selected Treatises, Researching Aviation Law Topics: HOLLIS Searches, Researching Aviation Law Topics: Book Series, Researching Aviation Law Topics: Getting the Deal Through, Airline Deregulation Act of 1978: Selected Research Resources, https://www.transportation.gov/airconsumer, https://www.gpo.gov/fdsys/pkg/CFR-2004-title14-vol1/content-detail.html, https://www.loc.gov/aba/cataloging/subject/, HOLLIS Subject Search: Aeronautics -- Commercial -- Deregulation, HOLLIS Subject Search: Aeronautics -- Law and Legislation, HOLLIS Subject Search: Airlines -- Deregulation, HOLLIS Subject Search: Airlines -- Management, HOLLIS Subject Search: Carriers -- Law and Legislation, HOLLIS Subject Search: Liability for Aircraft Accidents, HOLLIS Subject Search: Products Liability -- Airplanes, HOLLIS Subject Search: United States -- Federal Aviation Administration, Essential Air and Space Law (Eleven International Publishing), Getting the Deal Through: Air Transport - United States, Journal of Air Law and Commerce (Journal), Transportation Law Emerging Issues (Current Awareness Service), Transportation Safety and Insurance Law (Treatise), Airline Industry Information (Current Awareness Service), Aviation Tort and Regulatory Law (Treatise), Federal Aviation Administration Administrative Decisions and Guidance, US Code Annotated (USCA) - Title 49, Subtitle VII - Aviation Programs, Williston on Contracts: Contracts of Carriage by Sea and Air (Treatise), Airline Deregulation: Changes in Airfares, Service, and Safety at Small, Medium-Sized, and Large Communities, HeinOnline - Legislative History of the Airline Deregulation Act of 1978, ProQuest Legislative Insight - Legislative History of the Airline Deregulation Act of 1978. 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